Understanding Diminished Value Claims
What Insurance Companies Conceal
Insurance companies often withhold crucial information from claimants. This article, part one of our series "What Insurance Companies Hide From Individuals Making Claims," focuses on diminution of value or diminished value claims.
Repairs Don't Cover Value Loss
You might be surprised to learn that if an insurance company only paid for your car's repairs, you might have been unknowingly disadvantaged. This is because repairs alone do not account for the loss in your vehicle's overall value.
Accidents Reduce Vehicle Worth
It's not surprising that a vehicle involved in an accident is worth less afterward. A quick look at a Carfax report and its accident history confirms this. An accident record immediately lowers a car's value.
Potential buyers often question why they should purchase a damaged and repaired car. They worry about the quality of repairs and the risk of future breakdowns. This inherent risk reduces the car's market value.
when your car is damaged by another person’s negligence, the insurance company of the at fault driver owes you the reduction in the value of your car over and above the costs of repairs*
Your Right to Diminished Value
What may surprise you is that when your car is damaged by another person’s negligence, the insurance company of the at fault driver owes you the reduction in the value of your car over and above the costs of repairs. Insurance companies have actively worked to keep this information from the public. If all eligible individuals filed diminished value claims, insurers would face significant financial losses.
Therefore, be prepared for substantial resistance if you pursue a diminished value claim. Insurance companies will likely try to deter you from seeking this compensation.
Insurance Company Tactics
Denial and Delay Strategies
Initially, insurance companies may assert they are not obligated to pay for diminished value claims. They might argue that since your vehicle was fully repaired to proper auto repair standards, its value has not diminished. If this argument fails, they may attempt to overwhelm you with requests for extensive proof that your car's value has indeed decreased.
Even if you navigate these obstacles and receive an offer for diminished value, it will likely be a small sum. This offer often represents only a fraction of your car’s true diminished value, as they aim to settle for the lowest possible amount.
The truth is, diminished value claims are alive and well in the State of Ohio
Ohio Law Supports Claims
The truth is, diminished value claims are alive and well in the State of Ohio, and they always have been. Case law in Ohio clearly states that an insurance company owes a claimant the reduction in their vehicle’s value over and above the cost of repairs to the vehicle. The evidence needed for these claims is not overly complex.
You simply need to demonstrate what your vehicle was worth the moment before it was damaged, and then show how much the vehicle is worth just after repairs are completed. The difference between these two values represents the diminished value.
Seeking Legal Assistance
Expert Diminished Value Attorneys
At Mckenzie & Snyder, we possess the expertise to prove diminished value claims effectively. We collaborate with professional appraisers and automotive repair experts to gather the necessary evidence.
This allows us to negotiate your diminished value claim successfully, and if necessary, take the insurance company to court. If another driver's negligence has damaged your car, contact us to discuss your potential diminished value claim.
